Thailand holds rates, warns of inflation risks amid recovery

BANGKOK: Thailand’s central bank held off raising its benchmark interest rate to support a nascent economic recovery, even as it sees rising risks from inflation that has breached its target range.

The Bank of Thailand’s (BoT) rate-setting committee decided unanimously yesterday to hold the key rate at a record-low 0.5% for a 14th straight meeting, as expected by all 24 economists in a Bloomberg survey.

Economies globally are seeking to navigate a recovery path between tenacious virus variants and inflation pressures, while South-East Asia faces a particular risk to capital flows as the United States Federal Reserve prepares to raise interest rates.

Indonesia, which decides policy today, has turned hawkish, while Singapore has tightened policy twice since October.

The Thai bank “is likely to…